Disney Star's Viacom18 deal: A positive development for BCCI

With the much-anticipated Zee-Sony merger falling through, all eyes are now on the possible union of Disney Star and Viacom18. If the two companies indeed come together, the new entity will undoubtedly become the largest broadcaster in India, both in terms of market share and number of channels. Also, the newly formed company will have a monopoly in terms of sports content because Disney Star and Viacom18 hold media rights to the country's all major sporting events, especially cricket which accounts for the biggest chunk of sports advertising revenue. While the monopoly in sports content will be an advantage for the broadcaster, how will it impact the Board of Control for Cricket in India (BCCI) when it comes to the auction of media rights? 

Industry analysts share that the consolidation may limit the BCCI’s options when it comes to selling their cricket rights. However, due to the market becoming less competitive, the industry may see some tech and OTT behemoths enter the fray strongly. 

Monopoly in sports coverage is not new globally, with ESPN being dominant in the US for many years (particularly in the college football market which is one of their most lucrative sports) and at the same time setting the benchmark for sports programming the world over, opines Bhairav Shanth- Co-Founder ITW Consulting. Sky TV has built a similar stature in the UK ever since they played an important role in the creation of the Premier League, he adds.

According to Shanth, from a purely revenue perspective, the BCCI may find that growth in the value of media rights may slow down compared to what we have seen in the past, led mainly by competition and multiple interested parties with deep pockets. “But while consolidation is a natural consequence of runaway growth in most industries, we are more likely to see innovation and new technology come in with the broadcaster having the security of a longer tenure. So, from a viewer’s (and even advertiser’s) perspective, it will have a positive impact. However, it will need the broadcaster and the BCCI to work together keeping in mind that ultimately it is the viewer who votes with their choices and preferences,” said Shanth.